The EU "bailout" of Cypress is where the EU gives German and French banking speculators $10 billion and then removes the same from the bank accounts of Cypriots.
Since the scale is so small, it is so very clear to see what has been going on all the time. And contrast this experience of Cypress with another island, Iceland.
But wait wait, there is more...
The tax on deposits, as well as hurting wealthy Russians with money in Cypriot banks, will also sting ordinary citizens. Some ATMs in the country ran out of cash, Erotokritos Chlorakiotis, general manager of the Cooperative Central Bank, told state-run CYBC.
This is a warning shot to all those who have money in safe-keeping in overseas banks. The ten percent today is only the down payment. Russia is not in the eurozone, and the EU just gave Russian savers a haircut. This is only a test.
If you depend on a paycheck, pension or property, you are sunk. Now add savings (pork?) to that list.
Savings has been targeted all along, by means of central bank inflation targeting, 2% or so, so really nothing new here except the powers that be seem to be in a hurry.
No doubt this will cause a spike in the gold price as people take out currency and use it to buy gold. That would be a mistake. Gold will eventually be taken or made worthless for the cost of getting caught with it.
The money should be taken from the banks to start a business. There is your only harbor in the coming storm.
Feel free to forward this by email to three of your friends.
Since the scale is so small, it is so very clear to see what has been going on all the time. And contrast this experience of Cypress with another island, Iceland.
But wait wait, there is more...
The tax on deposits, as well as hurting wealthy Russians with money in Cypriot banks, will also sting ordinary citizens. Some ATMs in the country ran out of cash, Erotokritos Chlorakiotis, general manager of the Cooperative Central Bank, told state-run CYBC.
This is a warning shot to all those who have money in safe-keeping in overseas banks. The ten percent today is only the down payment. Russia is not in the eurozone, and the EU just gave Russian savers a haircut. This is only a test.
If you depend on a paycheck, pension or property, you are sunk. Now add savings (pork?) to that list.
Savings has been targeted all along, by means of central bank inflation targeting, 2% or so, so really nothing new here except the powers that be seem to be in a hurry.
No doubt this will cause a spike in the gold price as people take out currency and use it to buy gold. That would be a mistake. Gold will eventually be taken or made worthless for the cost of getting caught with it.
The money should be taken from the banks to start a business. There is your only harbor in the coming storm.
Feel free to forward this by email to three of your friends.
0 comments:
Post a Comment